The United States has the most dominant currency in the world. Their status has come under pressure since dominating countries also known as “Major movers,” including China, Russia and the European Union are desperately trying to take over the top-ranking spot to become the most powerful currency. Korin, the co-director at the energy and security think tank stated, “We don’t know what’s going to come next, but what we do know is that the current situation is unsustainable”( “A 'Growing Club' of 'Very Powerful Countries' Is Steering Away from Using the Dollar.”).
USD is seen as one of the safest investments in the world, and it rises during times of economic or political disarray. Countries that have tried to undermine the importance of the dollar ultimately come to a pause because of different factors that play a major role. One factor that another countries dollar may face is being subjected to the United States jurisdiction when they transact in dollars. When transactions are being cleared through an American bank or when U.S dollars are being used, entities are subject to the U.S. jurisdiction.
Countries tend to shift away from using the U.S. dollar because they do not want to be subject to the laws of the United States for doing business with rival countries.
If the influence of the U.S. dollar declines, other currencies such as China’s yuan will be renounced as the most powerful currency in the world.
China is trying to make their currency more international by creating different businesses that will be yuan dominated. China plans on paying for imported crude oil in all yuan substituting the USD.
From my point of view USD will remain the top currency in the world because of its international presence in today's global economy. USD makes up 61% of all known central bank foreign currency reserve. The next closest reserve currency is the euro. It makes up 20% of known central bank foreign currency reserve.
“A 'Growing Club' of 'Very Powerful Countries' Is Steering Away from Using the Dollar.” Nightly Business Report, 31 Oct. 2019, nbr.com/2019/10/31/a-growing-club-of-very-powerful-countries-is-steering-away-from-using-the-dollar/.